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No Action from the Fed

Posted on 8/26/11 at 9:05 am
Posted by Wilfred
New Orleans
Member since Jul 2011
926 posts
Posted on 8/26/11 at 9:05 am
LINK

quote:

“In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus,” Bernanke said in a speech today to central bankers and economists gathered at an annual forum in Jackson Hole, Wyoming. He said a second day has been added to the next policy meeting in September to “allow a fuller discussion” of the economy and the Fed’s possible response.


This post was edited on 8/26/11 at 9:17 am
Posted by I Love Bama
Alabama
Member since Nov 2007
37686 posts
Posted on 8/26/11 at 9:51 am to
What is the general consensus around here on QE3? I don't think the first two did anything...
Posted by LSURussian
Member since Feb 2005
126829 posts
Posted on 8/26/11 at 10:35 am to
quote:

I don't think the first two did anything...

You don't believe the QE's had an impact on lowering interest rates?
This post was edited on 8/26/11 at 10:36 am
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51394 posts
Posted on 8/26/11 at 10:43 am to
quote:

You don't believe the QE's had an impact on lowering interest rates?


Maybe he meant Unemployment?
Posted by Sid in Lakeshore
Member since Oct 2008
41956 posts
Posted on 8/26/11 at 10:50 am to
quote:

No Action from the Fed


and no discernable reaction from the markets....

I'm starting to think it may be time to think about increasing exposure to equities....

valuations look low and over the next 4-6 months I think they have to move up.
Posted by LSURussian
Member since Feb 2005
126829 posts
Posted on 8/26/11 at 10:53 am to
quote:

Maybe he meant Unemployment?
Maybe so, but even then, how do we know unemployment might not have been worse without the QE's?

I know 10 year t-bond yields were lower as a result and that lowered mortgage rates since mortgage rates are loosely tied to the 10 year bond rate.

Did the lower mortgage rates do any good for the economy? Probably but difficult to prove. They sure didn't increase unemployment.
Posted by LSURussian
Member since Feb 2005
126829 posts
Posted on 8/26/11 at 10:56 am to
quote:

and no discernable reaction from the markets....
The Dow Jones dropped 150 points within 7 minutes of the release of Ben's statement. Then it recovered and went positive. As I write this post, the DJ is UP 90 points.

I, for one, can't figure out the insanity of this stock market.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 8/26/11 at 11:07 am to
EMH becoming true in the short run because of HFT?
Posted by LSURussian
Member since Feb 2005
126829 posts
Posted on 8/26/11 at 11:09 am to
quote:

EMH becoming true in the short run because of HFT?

IDK....
Posted by Wilfred
New Orleans
Member since Jul 2011
926 posts
Posted on 8/26/11 at 11:09 am to
The computers will eat us alive!
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51394 posts
Posted on 8/26/11 at 11:17 am to
quote:

The Dow Jones dropped 150 points within 7 minutes of the release of Ben's statement. Then it recovered and went positive. As I write this post, the DJ is UP 90 points.

I, for one, can't figure out the insanity of this stock market.


Up 152 now. Maybe folks are seeing the Fed's reluctance as a positive? (or at least not adding a negtive)
Posted by sneakytiger
Member since Oct 2007
2471 posts
Posted on 8/26/11 at 11:33 am to
The markets are taking news of Jordan Jefferson's imminent arrest pretty well
Posted by Sid in Lakeshore
Member since Oct 2008
41956 posts
Posted on 8/26/11 at 11:40 am to
quote:

Up 152 now. Maybe folks are seeing the Fed's reluctance as a positive? (or at least not adding a negtive)


I'm hoping we are starting to put in a bottom...
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